they make generators. raising earnings forecast for the year after a pre-storm surge in sales. that will be an all-time high. >> that does it for us today. join us tomorrow. right now it's someti's time fo on the street." one important piece of the recovery will happen here in just 30 minutes. the opening bell at the new york stock exchange. good morning. welcome to "squawk on the street." historic day for the markets. i'm carl quintanilla with melissa lee, jim cramer and david faber. a lot has gone into making this morning happen as we look at futures higher today. nyse loaded fuel trucks, run tests, had the staff sleep here

overnight. it is confident in a full session here today. europe advancing as well. data from that side of the atlantic. the real story is going to be whether the markets trade normally today and how they absorb corporate news over the next 24 hours. >> the percentage of corporate news that is good versus bad is remarkable. dow stocks doing something that someone feel is a deal that worked. pbh in a deal that extends the calvin klein brand. in europe, bp reporting a good number. big cap names that did a lot of good. >> we also have kay shiller coming in with home prices at the highest level since september 2010. ford and gm beat. in terms of pent-up demand, the vibe is higher. to your point on whether trading will resume normally, i talked to traders yesterday. they said it could be dipping your toe in the water meaning volume is light in the beginning to see how things actually go to

make sure the connections are there. we'll see if it goes as well as they predicted. >> this is one of those days where i sure hope it goes well because we've had lots of smooth days where there's no power outages that turned into a fiasco. >> true enough. >> i want to keep fingers crossed. >> it's not just about what happens in this building. goldman sachs has generator moving on power. not every bank has every office open today. tough to get around the city right now. >> tough to get around the city. tough to get employees for many of these banks to where they need to be. a number of them -- many of them are working remotely. as you say, everybody is trying to be fully open for business. i have made a handful of calls this morning. it has been a mixed bag in terms

of getting people out to offices given there is no mass transit in new york city which is really -- the fact that subways don't work is a stunning thing in this city. it's hard to make new york work without the subways. >> it's not even if people are in their offices. phone service is patchy when it comes to land lines and cell phones and there are some entire buildings, citigroup has a building at 111 wall, 1,800 employees there, they can't get into that building for weeks. >> look at this. this is context in which we're operating. this is cover of "the washington post." this is new york's katrina. obviously the death toll compared to that storm nowhere near approaching it but still 20 some odd people dead in new york alone. 2 million people without power. for those of you that live around here, we hope you're safe and your homes are okay and families are okay. if you're in other parts of the country or the world trying to trade today, there are going to be business decisions, trading

decisions to be made. >> we don't know how badly the insurance is going to do. it's up to you. you may think it's bad for insurance. maybe it's good. we don't have a good ballpark of how much and more importantly, so much of the damage is flooding, which historically has been one of those things where you call the insurance company and they say did you read the fine print? we don't cover flooding. the federal government has at various times extended flood insurance and helped people. particularly when anyone remembers the fiasco where the federal government says, listen rich people, you can build beautiful houses again. that road where they let beautiful houses doesn't exist right now after last night and a lot of the properties that were destroyed are wealthy people.

long beach island. people build homes where they shouldn't build them but counting on the federal government to bail them out again. >> flooding in homes and businesses. verizon sent out a picture of the lobby of one of their big buildings not far from here during the night of the storm. there was a foot of hudson river in there and that's a case for a lot of different things down here in downtown new york and throughout. let's not forget it wasn't just new york. new jersey perhaps hardest hit of any particular state. >> i wonder how little we know. i was watching tv. we were having helicopter problems. suddenly there is atlantic city in real life. you realize that chris christie had what we were looking for on google maps. suddenly you realize, holy cow.

this is katrina-like. loss of life, no. but property. where did it go? >> the mayor is going to ring the opening bell here this morning. the president apparently reportedly this morning wanted to visit manhattan. bloomberg said i can't spare the cops right now. he's going to instead visit the jersey shore with governor christie. that's the level we're at where we're not able to receive the sitting president of the united states. it says a lot. >> seaside heights, jersey shore show, very hard hit for those mtv officials. >> the jersey shore of my youth is gone. amazing pictures. >> the sand in the middle of -- we don't know anything because if you look at long beach island, there's sand everywhere. you can't get to it to figure out how much money and property. it's property. >> true enough. back to the exchange, bob pisani has been on the case all morning long regarding how we're going

to trade today here at nyse. good morning, bob. >> good morning. i'm back here in what's called the platform. this is sort of the data nerve center for the new york stock exchange behind me is lou, the head of floor operations and this is where all of the data comes in here. these are officials making sure feeds are coming in and everyone is getting data. it's a big day down here. it's pretty simple. they want a nice quiet and boring open would be fine with everybody. the ceo was here a few moments ago walking around making sure everything was fine. i caught up with him. he says so far, so good. >> we're on generator power. that's no problem. we can do that as long as we need to. we opened the gateways at 7:30. orders have been coming in since then. we have orders coming into the matching engines with systems that are fully functional and brokers are up and running so

far so good. >> the important thing as you heard everything is up and running. let's talk to neil. he was here 25 years ago during the crash. how does it look for the open? >> spotty. the technology we had internet service problems but the exchange has been unbelievable with their support. we were here early and they got us up and running. we're here as a physical presence. we're ready. >> you have hand helds. data feeds are working for hand helds. >> absolutely. that's one thing we nailed down to make sure we can get orders. the specialists are ready at the post ready to trade and open stocks a the 9:30. >> you have cell phones that you communicate with offices and sometimes when needed with clients. that's very spotty right now. two of the big downtown stations for verizon have been damaged. what are they doing to make sure that's working? >> they're working around the clock. they are going to try to get that open today. we have other ways to getting on

this thing. creative ways down here, believe me. we can figure it out. >> neil, thank you very much. one of the things they have done here that's very creative is they have raised the threshold for the auto execution for the designated market makers. these are guys that used to be called specialist. under certain circumstance, they could auto open a stock. they could allow the computer to open it without their physical intervention. normally they have to press a button to begin trading during the day. physically key in the open. they have raised the threshold for that to allow bigger stocks to open automatically. what that means, folks, very simply, is that it will be a quicker open and even their hope of course of more simple, quieter open. back to you. >> thank you. for viewers who are wondering whether or not the shot is a little dark this morning, a reminder we're on generator power. not every corner of the building is lit like it normally is. >> very true. >> caterpillar out with a positive story about generators

being sold. those who try to buy these, home depot at 62.71, that trade was done. the people who bought it on friday are the winners. i find it very difficult to buy at $62.71 and someone is going to come up in $63.38. >> for caterpillar talking about impact of sandy. it's not all good. they saw a boost of generator sales but other parts of the business are experiencing delays because equipment isn't where it's supposed to be. generac out with earnings raising revenue for the year. this is one that's experiencing a huge pop in the premarket on the back of this. it's a pure generator play. what they say is that there is a need for generators. beyond the hurricane people are going to realize they need generators.

they are experiencing a power outage. no more. i won't go through this again. an older demographic shift requires constant power. >> this is something david and i were talking about. it's not one and 100. 2 and 100. it's every other year. the generator may become standard for a lot of people who can afford them. they're not cheap. >> businesses as well. plenty of businesses experiencing power outages. restaurants with perishable foods that need to be thrown away at this point. maybe that underscores the need for these things. that stock is moving higher. >> you want to touch on disney here before we run out of time? >> let's do it. what an amazing deal announced yesterday. sort of perhaps lost in the storm a bit. i think a lot of fans of "star noticed it. just an unbelievable choice by

bob who has made these choices in the past and always comes out having made the right decision. i can remember interviewing him and steve jobs on the day they announced the deal and saying this is diluted. what are you doing? how can you pay $7 billion? of course that was the good price they would pay. and they followed that up years later with the marvel deal which was positive as well. >> "the avengers" alone. >> one question if there's dilution here, there will be some. investors are committed to buying back 40 million shares over the next two years that they are issuing to mr. lucas. i wondered off camera to jim whether he's motivated by changes in the tax code. i have to imagine the capital

gains in lucas films is a significant one if it goes from 15 to 25. i would assume they'll get this deal closed before the end of the year. i don't know. just another thing to keep in mind. amazing deal for disney. >> one thing that he has done, he's a true visionary in that he says this is a brand. think about the brand. it's on the shelf. they keep coming up with it. they do it differently. "star wars" and then they go to theme parks and they develop a new theme park which is another reason to go to theme park. >> consumer products. television. barclays says there's no company that is better at monetizing its ip and rolling through disney ecosystem. >> new york city mayor mike bloomberg making his way across the street near the exchange as he comes into the exchange to ring the opening bell on this first day of trading since last friday. there you see new york city

mayor bloomberg coming in. >> interesting tweets coming back and forth about antitrust. mental antitrust in disney. who do we have left that we went to the movies and saw? disney has them all except for -- >> warner brothers. >> warner brothers has cartoons and spongebob -- sandy is one of my favorite characters. >> we love a lot of spongebob in my house. a little young. >> we haven't gotten there yet. interesting on disney, pixar sucked it out of lucas films and sold it to disney which is now reunited with lucas films. a nice circularity. incredible. >> one of the themes that david said over and over again, listen, bankers, listen, companies, this is your chance to buy. stocks go up when you make a

buy. no one is listening. >> that's what we see this morning. >> these are must haves for disney. he made it clear and he made it happen. very interesting to watch. >> there's the mayor of new york city, mike bloomberg now on the trading floor. he'll ring the opening bell in 15 minutes. talking to duncan, ceo of nyse. what a couple days the mayor has had. a lot on his plate. we'll do our best to get him to a microphone in the next few minutes. we're just minutes away from an historic moment. the stock market about to reopen after being closed for two days because of sandy. outside of the exchange, manhattan and the rest of the eastern united states continues to try to recover. we'll talk to the ceo of utility southern company about the effort to restore power to the region. one more look at futures. any other day we would be pleased with this. we're back in a moment.

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>> lights on as new york city mayor bloomberg is making the rounds on the trading floor. he appeared to stop and check out a couple posts before the action begins. of course as a lot is still happening not only in lower manhattan but all across the eastern part of the united states. it's going to be a difficult and long process of recovery.

>> he has bob steel with him. one of my bosses at goldman sachs. one of his major associates. this team is uniquely understanding of what we're going through. these are people who have been in the financial services business and they really know what's going on here. it's very impressive. >> he has had to make controversial calls. the marathon scheduled for not too long ago is still on. >> he has a lot of people that have come from other places to run in a marathon. one wonders when you have many people without power and half of manhattan, how you're going to house them all, what hotels. we'll see. longer term challenges are economic development and one wonders what economic costs will be not just for this city but throughout the region as well. so many businesses not operating even today. what will that cost? and then larger costs. will you have to put up a sea

wall downtown. are you going to have to fortify subways in some ways? what are costs going to be doing stuff like that to deal with these not once in a century happenings. >> after one of the big bets they made in battery park cities has just started to pay off. lived through 9/11. had a housing comeback and now this. if this is going to happen more often, does likelihood of people wanting to live there go down? >> possibly. let's look at it another way. federal government can print money, all right. we've seen that. the areas that had to be rebuilt, housing people haven't done that well. construction people. there will be a lot of jobs. the construction business and a lot of suburbs has been nil because everything has been locked. new jersey hasn't done that well. there will be a lot of jobs created. i think that's going to make up for retail business that was lost. >> we have to head to a break. coming up next, cramer's mad dash. first one since friday as we approach this historic open. today is wednesday but the first

day of the week effectively after the sandy related shutdown. we'll take another look at futures as we head toward this open. up 7.5 on s&p 500. stay tuned.

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>> it's been gloomy. this is terrific that this is happening. >> i asked if today's market day would be good or bad. you said news out of europe was good. >> how long has it been before we had a couple great earnings report that bp was so good. ubs moving out of fixed income. good for our bank. i thought that ford was good. 40 cents versus 30 cents. thing about ford is they do have europe under control. they're beginning to do in europe what they did in the united states which is get more rationale. latin america good. east asia excellent. east asia was excellent. may i point out, this is $80 million swing but china getting rid of joint venture split three ways that will only be two ways. >> gm blew it away. >> remember the federal government still is tied to gm. this is a romney stock.

romney said he'll dump gm the moment he becomes president. but tim said that we'll wait until people are back to even. i think they'll get back to even. >> they say by mid decade in europe. >> i trust them. >> something we've been waiting to say all week long. the opening bell is coming up next. "squawk on the street" will bring it to you after this short break. [ male announcer ] this is joe woods' first day of work.

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from td ameritrade. welcome back. you're watching "squawk on the street" live from the financial capital of the world. opening bell set to ring in a little less than two mississinu. the man on that balcony right there. normally it is celebratory. today is more about resolve. making this thing happen amid difficulties and problems. no guarantees about how today is going to go. they are as sure as anybody expected them to be even once we started getting that surge in the new york harbor. >> bloomberg terminal is not doing that well now. that story. bob steel worked at goldman. this ubs news is moving everything august of the big international banks. this is an underreported story.

>> i want to do more. hopefully within our broadcast. we have so many things to cover. i agree with you. i want to get to ubs. it does have far reaching implications potentially for what they did. hopefully we'll have more on that. >> ubs and deutsche bank. higher trades in the banks overseas. financials here on the s&p 500 is the best performing sector for the month of october. worst performing sectors, technology. no surprise. telecom. no surprise. as we close out this month on the first trading session that we have had this week. 22% of new yorkers have no power. that is concentrated in lower manhattan so for this to happen is historic. >> when the president spoke yesterday he said sandy was tough and america was tougher. you can say the same about the new york stock exchange. whatever it takes.

generator trucks spending the night here. there is the opening bell. >> great news. >> a round of applause even on this desk. new york city mayor mike bloomberg and nyse ceo here to commence trading after a two-day suspension due to hurricane sandy. over at the nasdaq, times square alliance, another part of the city which has been hurt getting them up and running is no small feat as well. >> how nice it is to look at my screen and actually see them trade. >> yours is working. terrific. it looks like they're not going to postpone that lockup inspiration. that stock is trading down in anticipation of tons of stock

coming. >> more than 200 million shares. mostly by employees and what is surprising is willingness to sell at these levels. the stock is down 5%. that's one we're watching. microsoft trades higher. windows 8 -- last week feels like a million years ago. he was making comments about windows 8 outpacing sales of window 7. good news for microsoft. that stock is trading higher by 1.5%. >> resource stocks trading up. these are things that going back to what you said, an issue of things that are doing so well this month. we knew they wanted to get the exchange open. some institutions wanted to buy more of their positions, window dressing. >> let me stop you there. bob? >> the man of the hour here head of the new york stock exchange. it's open. congratulations. >> we got most of the stocks

open already. it's been smooth. the market making community is more than staffed to be up. nice to see the market up. nice to see it open. a majority of the stocks are open. so far so good. >> what impressed me was determination of this crowd. i came in very early. already there was a huge number of people on the floor. many people including larry, your coo, staying overnight. you could feel the determination to get it open. >> we've been working for it for the last three or four days. we may the only building south of mid town with water, lights, and food. that's more than hotels have going for them. it was a great team effort. >> there is darkness downtown. n nyse is one of the few that's

lit. the fro >> no water on the floor of the new york stock exchange. there was some issues about cell phone cognecktivity. >> we spent the first few hours giving brokers phone lines. what i'm hearing is they can get orders in and out. that's the most important thing. the dmm equipment is working fine. we tested that the last few months. everyone is up and running. >> now that you have it up and running, give us a quick thought of what you would have done differently. what have we learned from that? how would you proceed in the future in case heaven forbid there's another disaster. >> last time this happened was

1888. hopefully we won't be around for another one. we should have decided as an industry sooner on sunday what we were doing about monday. i think that's the mistake. if i had a do over, we should have arrived at the consensus whether we were not open or whether we were trying to operate electronically with a contingency plan. any one of those scenarios it became clear to me too late in the day that the industry wanted us not to be open entirely, right? i think once we figured that out, we all moved quickly and s.e.c. was terrific in supporting that decision. if i had a do over, i wish we would have made that decision sooner and communicate it to the rest of the world sooner so they weren't anxiously awaiting sunday night for us to figure out what to do. that's what i would have done differently. anyone that looks at footage for the next two days, if anyone wants to continue to be a naysayer about us not being open, monday and tuesday, you can call me any time.

i would love to talk to you. >> should this be something that the s.e.c. should look into about mandating required testing of these backup plans or these contingency plans. >> i think that's right. you'll see the industry rally around what should we do about mandatory testing of the contingency plans. the point of the comment i made earlier, even if i had done that, in a situation like this, the industry was going to decide if they did not want us to be open and so i don't know that that really would have mattered. i think that's something we should do as a normal course. if something happened where our building couldn't operate and we can't be open, there should be a contingency plan. we had them. they were irrelevant in this case because this was a human safety issue. we have the plans. we just have to see if they're tested. >> many people have noted, one of the things this has shown, new york city is still the capital of the equities markets. the inability of new york to open meant the equity markets

couldn't. is that a badge of honor and is that also a problem? should we consider trying to decentralize trading? >> there's two different answers to the questions. to me it depends on the situation. if this had not been a human safety issue and we just had a problem with our technology or our building, it's ridiculous for us to think that the rest of the world should wait while we solve a problem like that. to me the second answer to the question though is this is totally different. the human safety concerns trump all of that. so a few people have criticized saying how could you not have a plan -- by the way we did. why if new york is having a problem, we shouldn't be open. the markets shouldn't be open. a lot of people would have had to put their lives at stake. anyone who wants to question that decision isn't thinking clearly. >> five years from now if this happens again, can we envision a plan where we don't have to have everybody come into manhattan. we don't need to have all of these deaths. >> we could do that now. we could operate from the data

center and technology center. we could do it. the question is all of the other market participants, majority of which continue to be in the metropolitan new york area, would also have to be prepared to operate remotely. if you think that through, majority of them live here. you actually couldn't move them to the places where you wanted to move them to because there were no flights and no transportation and no power. we can keep talking about these things. we should always try to do better but i don't know if there would have been a different outcome. >> the board went black on the side. we're working on issues and getting -- >> we're fine. screens are working behind us. i think we're okay. markets are open. i can see screens behind you are fine. >> everything okay? >> everything is fine. >> any final thoughts? >> i just thank you for letting us communicate as openly as we were able to. i think keeping lines of communication open the last 48 hours were critical. we have gotten a lot of positive feedback from around the system

saying at least they knew for the last two days where they stood. thanks for allowing us that opportunity. >> thank you for allowing us to have access. a lot of talk about volume today. volume orders seemed heavier than normal this morning. any sense about end of month? >> it is end of the month. we had two days where people couldn't really do much. my guess is we were going to have a busy morning. i think we'll have a quiet middle of the day while people make sure their own contingency sites are working and i would expect a busy end of the day. >> all right. i think we're okay. duncan, thank you. appreciate it. he's more comfortable wearing a vest. there you go, guys. carl, back to you. >> great stuff. thank you so much. we listened closely to what he said. in general the idea they kept lines of communication open is true. they are the landlord. they have not been hiding. >> i have known duncan for many years. we didn't do it the way we should have. duncan is a good man.

>> we have to address the shot of this board. normally that board is filled with data. s&p 500, composite, vix, et cetera. it may have something to do with the fact that we're operating on generator power. certain data feeds dow jones industrial average has not opened but it has in fact opened. there are no issues here so far at the open. it's trading normally. the quote at the bottom of your screen on cnbc is correct. some screens, such as ones we're using, show zero. there are no issues when it comes to opening the dow. that's where we are right now. >> the one time you put me on the spot, i have no idea. >> fade into darkness. where are you? there's never been a pop song that you have not had a beat on. >> you got me. let's talk -- some people are

going to try to gauge the effect. it's hard to get clarity on the effect since a lot of companies that are in retail are quiet still. >> here's an odd one. kohl's going up. other than socks i'm wearing, i haven't been to a kohl's lately. it is making a move. >> is there a real play here or not on what has happened? i understand a lot of people have not been able to get in their cars and go to the mall over the last few days. not the biggest shopping period of the year certainly. does that get back end loanded toward the end of november when real shopping begins? >> that's a question when it comes to discretionary spending in retail. it would have otherwise been used for a new pair of pants or cosmetics or what not has been spent on hurricane preparedness and buying that extra generator

and does that spending come back? one saving grace as you mentioned is this happened way before black friday. there is time to get stores back open and get consumers back on the road and out shopping. have they spent their allocation for this month or for the last quarter of the year in getting ready for the hurricane and then repairing after the hurricane. >> pwr up. that's a hurricane repair play. and remember there are lots of companies that get to restock that didn't. we had a guy from hr where i don't know if he can restock that quickly. we do know, carl, from our interview yesterday, they can cycle through inventory and get paid big if they have a scale to withstand the cash flow. >> just to address the shot on your screen. there's nothing wrong with the trading on the dow. it's just the data feed coming into this one screen on the exchange. most of the others ones are

black because we're running on generator power. this one remains lit up. dow jones industrial average zero. there's a trade on the dow. no issues here at the open. let's make that clear. >> amazon not going up. i thought they -- >> if you have no power maybe you don't -- there's a push/pull here when it comes to this. >> it's a big debate amongst investors. >> the car trade. we have seen a lot of cars damaged. go to auto nation. carmax. auto nation okay. 600,000 new cars perhaps. i spoke to the people at ford yesterday. they still think a lot of sales come from the fact that the 11-year-old fleet where your car gets damaged and you get a new one. >> it's going to be a day to try to get as much color as we can. you can't necessarily pick up from the wires. for that we'll go to gary

kaminsky. what are traders telling you? >> i haven't been able to listen to you guys so i apologize in advance if i repeat things. the opening was about 85% on the buy side. things functioned very well at the opening. things are very slow right now in terms of connectivity. a lot has to do with the fact that member firms are trying to get information. opening was strong in terms of what was there and what actually happened. right now it's sort of mixed in terms of trying to get data here. i'm at the post here. things are slow. that's not the typical normal pattern in trying to execute orders. >> the session is moving along. >> i know we have talked a lot about the fact there are people working remotely and they are going to in an attempt to normalize this. it's the end of the fiscal year for mutual funds and end of the

year. i continue to really think there's just a tremendous amount of people that are not going to be active today because as we talk about no-nos, it's not the kind of day you want to make major bets. the sense here and it's a sense that i have gotten coming downtown talking to people that are in the office and few that have made it in. >> it is the end of the month. can't change that. >> you can't. i'm going to try to get people on camera later just to talk about the anticipation of year end for the mutual funds. a lot of people didn't figure it would be as much of a disaster as it was, were playing bets in terms of repositioning on friday. we're going to get more on that later. year end window dressing if you want to call it that was happening late on friday in anticipation of what might have been. >> all right. don't go too far away. thank you so much. our eyes on the floor today. meantime, david, i know you mentioned earlier you want to

look at some banks. >> i do. the banks we haven't mentioned much this morning. jim referenced ubs. that was enormous news we got. there was reporting about 10,000 people buying ubs. more importantly, the effect of shuttering of their fixed income business. they are keeping small parts of what is fixed income unit within the investment bank. ubs making a decision to get out of the fixed income business. we have talked often here at this very desk, jim, about the lack of profitability any longer and fixed income businesses for so much of wall street given not just dodd-frank but the capital free rule. they have taken r.o.e. down for these businesses. i wonder whether this move by ubs to say that we're done, we're out, is going to potentially give others at least a thought that perhaps we might consider that road when you look at ubs stock price trading up

the last couple days up 12% all in both before and we knew this announcement was coming and after the announcement. does barclays say why are we in this business? >> after that quarter don't you think they should? >> when they have a big wealth management business. >> even morgan stanley. they will say of course not. one has to wonder if investors will ask the question. you're in the fixed income business. creates volatility out of it. you have a huge wealth management business. usb was rewarded as a result. would you consider it? >> this is incredible. jon corzine, i know a whole new series of things, fixed income was making so much fun. corzine was going to get jobs. this was one of the great businesses. it's terrible.

>> today or yesterday anniversary of mf if i'm not mistaken. >> i think you're right. another impact to this is liquidity within the bond market itself particularly in high yield but in all corporates. used to be you could get a big on a big one. you want a bb bid on 60 million, you'll get bid five, ten points down. lack of liquidity because so many institutions have pulled back from the market to a certain extent is stunning. one wonders whether hedge funds won't move in there. a market reaction to a significant change in the financial services business. >> we have been waiting for blinking. we've been waiting for consolidation. waiting for people to pull business lines. it's happening. listen investment bankers and companies, it's a way to get your stock up. >> one wonders. ubs had its own issues when it comes to investment bank. could be seen as a different story than many of the other

more established ones. nonetheless, very interesting story that we wanted to make sure of course people did not miss. >> more layoffs, business still suffering, bonuses not going to be that good. profitability overall we've seen these stocks go higher. >> let's check in on bob pisani with more on what's moving this morning. >> let's put it this way. there are a lot of happy people down here none more so than duncan niederauer. data feeds coming in are off. we're trying to estimate volume. 90 million shares. that's not particularly heavy volume. a lot of discussion about this being the end of the month. you'll see volume toward the close where you get market on close orders because that's when the people who want to buy and sell certain baskets of stock will put the order in. as of now, fairly quiet open on light to moderate volume. one of the keys to the quiet open was a slight change in the

way they opened here. they raised the threshold for auto execution. these guys here are designated market makers. they used to be called specialists. with lower volume stocks they could have auto execute where stocks open without them physically intervening. otherwise they have to press a button to open stocks. they raised the threshold for the amount of shares they can do that. big stocks were eligible to auto open today. auto execute. that means a quick open. very quick and uneventful open. that's one of the main things that's going on today. other than that, fairly quiet morning. they brought in a lot of food here. there were people staying overnight camped overnight. here's the buffet table that was set up. this is a fairly rare occurrence when the trading day is open. this was open throughout the night as people came in last night because they weren't certain they would be able to stay here. the hotels are booked. a lot of hotels downtown even

ones that are dark are virtually full. there is a problem because you have 56 floors with no elevator service right now. back to you. >> working off those muffins. no doubt about that. >> muffins were good. >> let's head uptown to check out what's happening at the nasdaq. good morning. >> good morning. after a two-day shut down, the nasdaq here in times square reopens and it opens in negative territory down about half a point at 2987. let's start big and look at heavy weights. apple down 2% again coming down a very busy week of multiple product offerings, earnings, management shake-up we heard about earlier this week. one of the biggest movers here at the nasdaq, generac raising earnings forecast benefiting from the impact of hurricane sandy. want to point your attention to

a deal made earlier this week. river bed obtaining a company for a million dollars. on friday this is the first time we get to see these stocks react to the deal news. watching levels on nasdaq closely. we expect some emotional driven trading as one trader told me. we're not just talking about uncertainty around economic ramifications of hurricane sandy but others including china and europe. back to you. >> thanks. u.s. bond markets open for trading. hey, rick, good to see you. >> 49.9. there are several interesting aspects to that. we never talk about rumors. i was getting 49.9 number an hour ago before it was released. it proved to be correct. it is also the first time since august and september of '09 we had back-to-back readings on chicago under 50.

our last month was 49.7. this read at 49.9. having said that, if i look at how all of the issues of the east coast have impacted trading, i guess the answer would be not very much. interest rates really haven't been volatile even in the absence of a cash market. futures traded yesterday and other parts of the globe. we're hovering just above 170 on a ten-year. no great shakes there. under 290 for a 30-year bond. many are paying attention to the bank of japan and quantitative easing plus especially some more buying in things like real estate and reits which our fed hasn't done. yet. back to you. >> thank you, rick santelli. much of lower manhattan is without power but the new york stock exchange is up and running as you see. we'll take you through this historic moment and tell you which stocks are on the move. that's next. look at this morning's early movers on wall street.

>> we have two days to make up for so we'll do seven. >> i have sandy cutler on. numbers are good. this stock is going higher. >> preannouncement from westport. >> disappointing. buildup is not happening fast enough. natural gas not at your gas station. >> restoration hardware. >> coming in on thursday. mid 20s. same store sales. i want people to check with brokers. >> electronic arts? >> people must have moan how bad it would be because it's down. another hitless season. >> you had clean harbors earlier in the week. >> buying safety kleen. this is the deal they need. they do get the call for hurricane. >> you mentioned bed springs yesterday. >> they are the housing play right now. >> good numbers out of tangor. >> yes. a big buyback.

>> all right. so tonight? >> we have the best story of the day. i want to just play a moment of something that the ceo said to me earlier last month. >> $2 billion company, time to make it more than just a lice e licenser? >> we work together really well. underwear business continues to be very much on fire. and we're in a nondenim cycle and they are struggling through issues particularly in europe with calvin klein jeans there. >> there you go. i put it to him. i suggested he buy it. $2.9 billion deal and everyone loves it because calvin klein jeans have been underperformers. that will change.

pbh. a lot of people short it. this was a head slam for those short pbh. >> thanks for helping us get through. busy day ahead for you. we'll take you through this historic day. art cashin is next. the way it . the way it cleans. everything about the oral-b power brush is simply revolutionary. oral-b power brushes oscillate, rotate and even pulsate to gently loosen and break up that sticky plaque with more brush movements than manual brushes and even up to 50% more than leading sonic technology brushes for a superior clean. oral-b power brushes. go to oralb.com for the latest offers.

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welcome back to "squawk on the street." we're back to business here on wall street. finally back at our home at post nine as nyse reopens. the mayor of new york city mike bloomberg and ceo of nyse rang the bell here. markets trading up after two days of being closed. last time they closed for two con secretary -- consecutive days was in 1888. this happening during the heart of earnings season and a week before the election. more to come as the day just gets going. >> let's get more on today's trade. let's bring in art cashin.

art, curious to see what you're seeing right now in terms of what is unusual today whether it be good or bad. >> first of all, the opening looks like it went peacefully enough and peaceful is good. i think that the various phone vendors continue to have some problems. there were cell phone outages and internet connectivity problems and that probably is holding volume down a bit. i think some of the clients not because of here but because of their phone service are having difficulty getting access in. we have opening out of the way for the end of the month. next big deal is going to be who plays at the close. >> in terms of the connectivity issues carrying into friday's session, if they do, we have the jobs report out on friday. how could the trades be if these issues are not resolved by then? >> i think clients and the brokers are working steadily on it to see if they can find ways

to improve those connectivity issues. we are set up here to trade any way they want. they just got to get either the right phone service or some connectivity. you may see people as i've seen in the 50 years i've been doing this despite it being occasionally adversarial business, people help out. i think over the next ts we'll see that improve. >> it's very ad hoc. you can't control if at&t is giving you internet service or a back phone down here and whether people can connect with their own systems that are external to the exchange. in all honesty, a lot of people if you talk to them on the floor, they feel handicapped in what they're able to do and what they're able to talk to clients about today. >> you went from the time when at&t was the primary and almost sole vendor. now you have a wide variety of

vendors. the good and bad is that it keeps prices down and competition up. when one of them goes awawry, there's no way to switch from one to the other. they are looking for ways to step around that and see where they can get to. >> you sit back over the last couple days and marvel over the fact that the world's financial capital was brought to its knees and just halted for two straight days. how can this happen and granted it was a once in a hundred-year occurrence, hurricane sandy. you would have thought we would have provisions and our technology would be better. people across america wonder how could this even happen. why was this a possibility? >> the exchange was looking at ways to open up and you have to remember that it's not just here in this building. the clients and people with interest in it sat at trading desks all over new york and all over the tri-state area.

some of them even with people in chicago having connectivity problems that have nothing to do with here. when they were discussing opening earlier, they were told, wait a minute. let's not put our people at risk. there is some of that. i think what's interesting was that the clients decided the place to be is still here. >> are you aware of how big the teams are -- how many people are sitting at the morgan stanley desk trading today compared to normal? do you have an impression? everybody has to be there to make the market work. are they physically present in their own offices? >> i think you have at the minimum skeleton crews there making sure things get passed through as best they can. the biggest problem for them is that connectivity problem between them and the client to make sure they can get access. once it gets to those trading desks, down here we're ready to handle it. we're indoors.

it doesn't rain on their head. it would be busier if we had two people dancing instead of one. >> thanks for coming by. appreciate it. >> let's catch up with corporate stories we might have missed through the other big events today. herb greenberg is back at hq. >> so much going on including today especially in earnings when you squeeze so many names through the hour glass. they missed from the top and bottom lines. it's the reason for the poor performance that grabbed my attention. the company says it's adapting to industry conditions. i would like to see elaboration on the company's earnings call. let's look at the video game industry. yesterday when nobody was looking, electronic arts reported and the ceo made a point of saying the company "once again beat street consensus for the quarter" and cut revenue guidance for the second time in two quarters. the stock as it appears is up on

that. take two interactive similar story. the company beat its own guidance. guided down for the second time. it cited relief schedules. cautious in guidance saying it expects continued challenges in the end markets for johnson controls. u.s. steel not much better. it had one of the most interesting explanations with concerns about inventory management and operating costs, which it says will rise due to operating inefficiencies caused by lower production volumes. also western union. the company sliced guidance. it raised difficult dent e edd. i have one other i want to mention here. that's microstrategy. i think it was a day or two the company announced they missed on

bottom line, missed on top line, the company doesn't offer guidance or have conference calls. a controversial name over the years. you can see today investors didn't let this one fall through the cracks. back to you. >> that's interesting to watch. depot leading the dow and travels the caboose. thanks a lot. back to the storm that disrupted so much of the northeast coast. the eye of hurricane sandy hit the jersey shore extremely hard wiping out boardwalks, businesses, power. the president set to tour with governor christie today. the damage is expensive. scott cohen all over lower manhattan and battery park where the power remains out and street lights are not working. kayla, we'll get to you first. >> reporter: good morning. we moved to the northern most part of atlantic city. still showing considerable scars from sandy which hit atlantic city directly on monday evening.

before we get to scenes around town, i want to orient you as to what happened here. take a look down here. this is a fire hydrant. this is submerge. i'm surrounding by shrapnel from the boardwalk that collapsed that floated off during monday's storm. this is not the place close to all of the businesses that we know so well. taking a look at other parts of atlantic city as you can probably see from my shot, it's the first day without major wind and rain meaning that now crews are able to get out and start picking up the wreckage. we've seen bulldozers around town. some streets closed and many residents we spoke to got power back this morning at around 7:00 a.m. thus allowing them to get pumps to move them to their houses and to begin pumping out some of the water that had flooded mostly basement levels here in atlantic city. that being said, even amid all of the residents here in atlantic city getting power back, still more than 2 million

residents of new jersey don't have power. many running on generators which of course will not last forever. the big question is how long most of new jersey will be without power. the story continues. we're waiting for president obama and governor christie's arrival. that will be an interesting bipartisan moment here in atlantic city. >> that fire hydrant picture is stunning. scott cohn, you're in a part of manhattan that's described as two different cities right now. that couldn't be more true. >> reporter: good morning from wall street. we moved inland from battery park and if you were just dropped here from outer space and just looked around for a second, you might think that this is a regular day at the office. of course it's not. mayor michael bloomberg was here to ring the opening bell for trading. we asked him as he came out of the exchange about the symbolism of that opening bell. >> it's good for the city and good for the country and good for everybody to get back to

work. >> reporter: as you can see, the workers are here. many of them got here before dawn to try to get things going. it is not easy to function in your daily life on wall street today. nothing is open. there's no power around here. more to the point, there are a lot of issues with telecom and with connectivity and getting cell phone calls through. that's just part of it and then look below the surface. you can see why this is a huge disaster in getting the stock exchange open today while an important signal is just the start. that's video of the whitehall subway street station. that's just part of what's going on in this city of commuters. getting people to work will be a huge issue for a long time to come. back to you. >> a city of great contrast in lower manhattan. thank you very much. coming up, local power companies across the united states are

sending their crews out east to help restore power to the millions of people who are still without it. we'll look at the recovery efforts with the chairman, president and ceo of southern company next on cnbc. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.

welcome back. let's get more on this historic day of trading. steve, thanks for joining us. >> a wait and see approach trying to make it as normal a day as unusual a day as possible. we're hoping for a calm, collective opening. i think we got that. volumes are lighter than we normally would see. i think people are starting to see the confidence is back and we're open for business. >> we were just talking with art cashin who mentioned connectivity problems. it's not an issue here at the new york stock exchange although there have been issues but mostly on part of customers. people outside of these walls may not have connectivity they need to execute trades. how concerned are you about this and resolving this issue ahead of the jobs report when it's usually a huge volume day. >> i can speak to what we do personally. we have it offsite. it's able for us to be up and

running seamlessly. the exchange has done a good job of making sure that inside these walls they are operational. a lot depends on verizon and other outsource. >> you talk to your clients all the time. are they back at work? what's the sense of clients being able to resume as close to normal as possible? >> they are. i would say 100% are figuring out how to conduct business whether it's on an offsite or whether on their normal operational menu. they are pretty much back at work. >> and of course traders pivot to the next thing. pivoting now that the open is over, what's the next thing on radar in terms of concerns for this market and ability to handle trades later this week. >> i think people can see today was the proven day. as long as today, knock on wood, goes without a hitch, i think people are going to start to see things are back to quasi normal. >> will it pick up throughout the week?

>> it should pick up. we'll get back to trading off of market data versus market issues versus the natural disaster issues. we just want to hope that everyone out there -- let's not lose sight of this. this is about humanity and people being safe and not losing their lives and keeping that to a minimum. >> thanks for your insight. carl? >> as crews in the northeast work around the clock to restore power to millions of people following sandy, utility comes in other parts of the country are pitching in to help. here first on cnbc is thomas fanning. tom, good morning. good to have you back. >> good morning. great to be back. >> we always think of you in terms of the southeast. i assume you're part of the relief effort, recovery effort. what are you guys doing? >> this is a national relief effort. virtually all of the utilities in this industry have gone to help this immense effort. let me first say, you know, our

hearts go out to the people and the communities and the families negatively impacted. the real heroes are going to be the linemen that have left their loved ones and gone and worked under very challenging circumstances. think about this storm. i it's wind. it's snow. it's flooding. the logistics to get power back on is going to be a mess but we're dedicated to make that happen. >> i would love to get your estimates of what you're hearing. it's not just trees down and power lines here in new york city it was flooding under ground. you had substations. con edison exploding. are you getting any sense of how long this effort may last before people have power back? >> as part of our regular planning process when we have natural disasters, you must know that as we anticipate the event coming onshore, we plan days in advance of that. there are regional mutual assistance networks that have

been in operation well before the storm hit. so we planned. we staged crews. we sent about 2,000 people from southern company. like i said, all of the companies in america have done that. we have to assess the damage first. that's one of the most critical things that we're finding out. that has been a challenge with some of the areas being flooded or snow. it's hard to get to the areas that have been impacted. once we assess, then we deploy the folks to the places where there's most critical need and then we repair and then we redeploy as the work goes on. it will take some time. >> mr. fanning, it will be interesting to see if anger grows in new york city over the coming days. we should be clear what restoring power to 800,000 people means. no power means no water in new york city because it has to be pumped into the building and it means no sanitation because

those people do not have it working and we're told it could be five days before that situation is rectified. if con edison is saying i'm sorry, we were worried for 12.5-foot surge in water. we got 15. forgive us. that's just the way it is? this isn't a terrorist attack. this is just a bit of wind and rain and it's crippling the southern part of manhattan as a result. >> you got to understand the scope and size of this unprecedented storm in this part of the united states is very unusual. i can assure you that everybody involved is working as diligently as possible to get the power back on. we understand. we get it. how important it is to get the service restored to the families that we serve. we're committed to doing that. >> tom, i think what simon may be getting to is as the head of the utility, con ed clearly they

planned big but i guess are others in the industry or you saying maybe they didn't plan enough? >> i'm not saying that. one of the things you have to understand too with the scope of this storm every location has to deal with the environment in which they are facing. every location is going to be different than every other location. we have to face unique circumstances and manage that process as best we can. i am absolutely confident that the leadership and the folks and boots on the ground at con ed are doing everything they can do to get the power back on as safely and as expeditiously as possible. >> you mentioned unusual nature of these storms. it seems as though we have unusual storms a lot more frequently than we used to. you run one of the largest power companies in the country, is it your thought that talks of

climate change will come to the fore and lead to discussions about your business? >> the point is right now we are not dedicated to getting into an argument. we have to get the power back on. that's our business at this point. we're going to get that done as fast and safely as possible. >> tom, thank you so much for coming on. of course on behalf of everybody in the northeast, thanks for the help you're providing today. >> it's an honor to help. >> tom fanning from southern company. $20 billion as the storm slams into the east of the united states. new york city alone committing $29 million to emergency contractors as workers begin to help people dig out from the storm. new york state controller will join us next to talk about the damage and what's being done.

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within the last hour, the financial center in new york is going again after hurricane sandy barreled across the east coast. the streets outside resemble a ghost town with public transport shut down and all eyes are on sandy's economic impact. on the cnbc newsline, we're joined by tom dinapoli. welcome to the program. >> good to be with you. >> there are lots of estimates as to how much this storm could cost the insurer. what sort of figures come to your mind as to the cost to them economically? >> the real challenge here in trying to come up with a bottom line is there is no bottom line at this point. the estimates are obviously in the billions in terms of an impact of property damage, loss of businesses we're concerned about revenue impact coming to the state of new york. our budget has been in a very fragile condition. we're all trying to make

assessments. any guesstimate out there right now is just a guesstimate. in the short run, it's going to be a negative impact. no doubt about it. you look at hurricane irene, tropical storm irene, the cost to state and local governments of new york was $1.2 billion. that was for recovery and cleanup. clearly this is going to be an economic hit on us. dimensions of which we just don't know yet. >> it's interesting how it impacted with mta shut down and people unable to get into manhattan for example. lower manhattan almost deserted. certainly very few businesses operating and few businesses operating at night. how does that work its way through the economy? >> very significantly. we take for granted the extensive public transportation system we have in the new york city metropolitan area. it's the life blood to our economy. when that life blood is not pumping, it will have a serious

impact. it's not just how soon will trains be running but will be repair costs? they will be significant. mta had its own financing troubles particularly with regard to that capital program. they obviously weren't anticipating the kind of damage that this storm has brought. a long-term where we're at with financing for the mta is a very unclear picture. i am out here on long island. perhaps not as reliant on public transportation but the traffic signals are out and many businesses say to their employees to stay home for safety sake. as you know long island has 85% to 90% of customers without power and electricity. think of impact on small businesses. we think of big businesses and big players but small businesses that really typify communities like long island and westchester, they're not able to open. what's the impact there? real consequences here that we

still have to determine. >> small businesses around where we are at the new york stock exchange as well. wondering about longer term impact. the governor said we have to stop treating unusual storms as unusual. this is going to be the norm and we need to be prepared for that. does that mean a lot more costs in terms of trying to protect our shorelines and protect our subways and things like that down the road? >> it might very well. i think in terms of the issue of climate change, i disagree with your previous guest somewhat. i think science is here in walking around here on long island, he should take a visit here. i lived here all my life. we've not seen anything like this. rising sea level is an issue that many scientists identified for a long time. we have short-term infrastructure investment we haven't dealt with. a gap in excess of $80 billion in terms of what we know prior to the storm we needed for our

local government infrastructure. so if you add just billions on top of that and talk about sea walls or floodgates, i do think that we have to assume that this is a changed environment now in all of our decisions about where we locate buildings and mitigation efforts and certainly from our point of view investing pension fund dollars making sure that those we invest with take into consideration the risk of climate change and how to mitigate against it. i think this is what new normal will be and we'll be wise to listen to these warning signs from mother nature. what that's going to mean in terms of cost, anybody's guess. we have so many unmet needs already. that's a long-term discussion and one that not easily resolved given limited resources. >> okay. tom, good to see you. thank you very much. tom dinapoli joining us there, new york state comptroller. >> we were talking to the comp controller. labor department saying jobs number will come out as

scheduled. adp would normally happen today but that tomorrow. we'll get the last jobs number before the election no matter when the election is will come on friday. we'll see how it comes in. >> in terms of stocks we're watching, apple down by 1.9%. first opportunity for the stock to trade since the massive management shake-up. biggest one since tim cook took over. some say that he's really making his mark as ceo in terms of replacing head of retail and also kicking out scott who was seen as successor to tim cook. stock is down largest since november 2008. it was the leader in terms of downside on the nasdaq which is down 4% month to date. >> we'll give you an update on action on wall street including

comments from ceo. that's coming up next. dow up 39. s&p up 2.5. back in a minute.

welcome back. earlier we spoke with duncan niederauer. >> they're happy. a nice, quiet boring open. that's what they had. a lot of people running around at the open. it was quiet ultimately. volume, very interesting a bit on the light side. a lot of reasons for that. i have been calling around to talk to people. people are just not in. either the phones are not operating or they're not answering. some of the few people i was able to get aren't doing much in the way of trading. it's not a heavy news day overall. volume will be light going into the close. you'll see a pickup in market because it's the end of the month. that's the primary reason that we're here. time for a post-mortem. i asked duncan niederauer to give us response to those people

trying to second-guess that decision to close on monday and tuesday. here's what he said. >> whether we were trying to be heroes on monday or whether we were completely not open on monday as nyse or whether we were trying to operate electronically with a contingency plan, in any one of those scenarios it became clear to me too late in the day that the industry wanted us not to be open entirely, right. so i think once we figured that out, we moved quickly and s.e.c. was terrific in supporting that decision. if i had a do over, i wish we had made that decision sooner and been able to communicate to the rest of the world sooner. >> we'll talk about that in the next hour. a closer look at those contingency plans going forward. a lot of traders are talking about blame it on sandy as an excuse for some of the problems in fourth quarter earnings. more about that in the next hour. >> that's interesting what he's saying. they closed because everybody else didn't want to start trading rooms and desks effectively. we're an hour and six minutes

into trade. what are you hearing? >> as bob pointed out, the exchange gets an a plus for being able to open. most of the consensus here and i would say it's almost 100% of the people i have spoken with on the floor have said that fortunately it was month end because the type of volume necessary to open stocks as they did at 9:30 was really helped by the fact that it was month end. if we were november 6 or 7, might not as been as orderly. as far as what we see the rest of the day, the grade is incomplete at this point. it's unbelievably quiet. you see i'm in a post right now in terms of order flow it's incredibly thin. very illiquid. it feels more like a friday in august right now as you know you can hear a pin drop on the floor because things are quiet because people are simply not transacting business. what i heard from some of the desks is they had trouble in terms of bottlenecks getting orders in. n

they can't get orders to be transacted in. a lot of people have said go home. do your homework over the weekend in terms of portfolio management analysis. we'll start on monday. the next two days will be thin as well. >> certainly people were in earlier. >> to gary's point, i made a handful of phone calls i always do, i was not having great success ratio of getting people at their offices on the phone. i think your point is a good one. i'm sure skeleton crews at a lot of places. >> you can do all of the connectivity test you want. if you don't have people on the subway, you won't get engines of the wheels of commerce to turn. that's bottom line. a great point about setting expectations for the next 48 hours despite the drama of the data we're going to see. jobs numbers will be a big number. a lot of people watching it from their living room at home. >> can you trade the jobs number will be the question on friday. >> can you trade the expirations

this evening? at the end of october. >> all right. before sandy even made landfall, bottles flew off the shelves as 6 million people without power in many houses under water, clean drinking water is essential. senior vp of sales for the northeast region of coca-cola joins us now. jim, great to have you with us. >> glad to join you. >> give us a sense as to what has gone on prior to the hurricane to get product in place and what's going on now to supply the people who need the product after the hurricane. >> as you mentioned, we built our plan starting the middle of last week to prepare. in times like this, we move up our deliveries. monday and tuesday deliveries we moved into saturday and we ran extra routes as we call it on sunday and really worked with our customers to supply

additional product. obviously with the huge demand on water. we did a good job of building inventory out there before the storm knowing that the big rush comes before. obviously throughout the storm the safety of our employees was the top priority. we closed some of our facilities monday and tuesday. we're excited that we're back up operational today. we have trucks on the road. we communicated with our customers even during monday and tuesday so we're back out there on the road today in most areas wherever we can get to obviously there's some really affected areas along the coastline of new jersey and in parts of new york city that you can't get to. >> what's your sense from customers as to whether or not they've sold out product which

you presupplied ahead of the hurricane and your distribution back up and running, is there enough product? have the plants we opened that are bottling the water? is there enough supply to distribute? >> yes, there is. we have 11 production facilities in the northeast. we're bringing in product from the west and from the southeast additional supply. so we have product. we're getting additional stock today and throughout the week and so we're working with all of our customer partners and then as well as with some of the local community and disaster relief agencies to help supply some donations for the shelters and other needed areas. >> jim, do you think hurricane sandy will change how leadership team at coca-cola talks to america about climate change?

outside of the united states you are very prominent improving green credentials. are you ready to say to america we need to control carbon dioxide emissions now so hurricanes for your children aren't worse than this? >> i know our company is very active on that from a global perspective. we are very involved in that. coca-cola company has a long stranding tradition of working with local communities, disaster relief agencies, to support their aid efforts in affected areas including donations and everything else that we do. one of the things that's important to us is our people live and work in these affected areas. they take tremendous pride in working with their customers and communities in times of need. at coca-cola, we would love to

say that in times of needs nobody comes together like the coca-cola family to support the communities. >> one last question here. when we take a look back at this period of time before and after the hurricane, are we going to see that the mix shift in terms of product sales have changed and distill beverage and waters opposed to sparkling, coca-cola, et cetera? >> obviously when you have hurricanes and these emergency situations, our water sales spike up obviously everyone is stocking up on water for obvious reasons. so we do get a spike in still beverages and generally after the storms we go back to our traditional product mix. that's kind of what we're working on right now. we're working with the american red cross and really working on a plan as we speak to send coke trucks into hardest hit area, lower manhattan, breezy point,

new jersey shore to donate water again to provide relief to our consumers that don't have power out there. >> we love to be there when you send those coke trucks in. appreciate your time. >> sounds good. >> jim brennan. >> important day for the markets today. you want to hear from a market icon. jack vogel will join us coming up and gasoline futures are jumping even though longer term people expect us to see relief on gas prices. we'll take you to the nimax next. there are a lot of warning lights

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action and joins us now. >> back to business but a lot of folks have had trouble getting in. look at the options pit where they are normally shoulder to shoulder. today it is quiet. one thing that's helpful for options traders is their options expired on friday ahead of the storm. not so today for futures in terms of gasoline and for heating oil. options expiring this afternoon. you see more volume there. they are extending gains that we've seen. outside gain in gasoline. a couple things going on there. you got a couple refiners in the northeast in the new jersey and philadelphia area that are starting to come back up. power is going to be a big issue. the bayway refinery and phillips 66 refinery known as gasoline machine supplying all of new york city will have more trouble. they did have some flooding but partly also,, traders are saying that people are trying to get out of positions. you see that big disparity between december and november contracts.

back to you. >> we'll come back to you shortly. thank you so much. stocks opening today after a two-day shutdown because of sandy. we'll get some perspective from market legend jack vogel when we come back. fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim.

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. markets reopening on the up side for the dow, s&p basically flat. nasdaq a little lower, in the aftermath of hurricane sandy. joining us jack bogle, senior chairman and founder of the van guard group. always good to have you. good morning to you. >> good morning to you. >> the mayor said it was important this place opening today. how important would you -- >> wouldn't put it high on my priority list. we have gone four consecutive days without trading, and the sun still came up. we may not have been able to see it, but if the trading is interesting, but doesn't advance the ball anywhere. somebody is buying and somebody is selling, >p and the stock

doesn't care who owns it. so if it had gone on a few more days, it wouldn't have bothered me. >> but you know how funds work, the end of the month is a significant pivot point. >> woe don't do much trading, because our businesses haven't overwhelmingly dominated the index funds that don't trade at al all. ist not disabling, not the difference between success and failure, just market noise. >> certainty the market itself is not noise, whether you're talkic infrastructure in the lower manhattan or banks to staff their headquarters. >> absolutely. >> what's your take on what sandy will take on the wheels of commerce. >> if i can start with a brief personal note, one of the last big hurricanes was hurricane andrew in 1982, and i have a son

named andrew, and this one comes along and i have a daughter named sandy, so if it's named after a bogle, look out, but those things of course are damaging, requires us particularly in this technological age, for whatever values it creates, which i think is very small it requires to think long and hard about the positions. the oceans are rising. there's news for you, and it's not going to get any better in new york. they have some work to do. i don't know what it's going to take for new york to have an infrastructure that can take these kind of storms a little more in stride. this was a monsz terr, no question about that, but all the experts on global warming are saying the whoa nature of it is much more extreme, not just warmer weather, but extreme weather. extreme cold, extreme drought, extreme hot, extremity rain, so

i think everybo should be thinking about how do we keep the markets open, how do we fulfill the needs of investors and traders. >> deutsche bank said exactly what you said. they said it's clear the weather is becoming more volatile and extreme and that should change where and how you invest, almost like a make roe play. would you agree with that? >> i wouldn't know how to do it. they're probably more smarter than i am. i'm a hedgehog that knows once great things and they're the foxes with all these messages on the side. i wouldn't know where to biogin. when you see what happened in japan, that's a pretty good example. the weather overwhelmed everything p. the tsunami. does that mean you should never own japan? we have the way, for want of a better expression, wove a way of muddling through. i think a wonderful old aforism,

this too shall pass away. wool adjust, we're that kind of people in the u.s. just shoulder on and do their best day after day. i don't know how you can't invest around global warming. >> jack, one last question. so much debate about how the exchange would open would you say centered around the people, the human beings they could get into this room today. are we going to look back in six months and a year and think of this as an event where we had to reframe the debate over computers versus human? >> honestly, yeah, i think that's a debate we should have had a long time earlier. we've known from some of these wild variations in the market that computers without human intercession can do really stupid things, and they've done it time and time going. so there has to be some judgment to balance off all that rapid process that we have. so, yes, the human being still

is an important part of the equation, absolutely. >> jack, always good to have you. good luck getting through the next few days. >> okay. thank you. it is the first day back from trading and some big movers and it's a historic day here at the exchange.

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so with a few seconds left, what's coming up on faye? >> of course first day on markets, breakdown of apple, and big mover in today's session. and thing the the demand for all the generators out there. we'll get the ceo's take. >> i'm hearing from friends who says that's it, i'm getting a generator. i never have, and i'm finally going to braeng down -- >> i wish the hotels in lower manhattan would get generators. >> david, thanks again. see you all later. if you're joining us, here's what you missed earlier this morning. welcome to hour 3 of "squawk on the street." here's what's happening so far. >> when you think about what people have gone through in their own lives and what they are leaving behind, it gives us a sense of the code indication of what it takes to get the

markets running. >> when chris christie sewed things are incal cable, he seemed to be something -- like apple maps, that guy's gone, and suddenly you realize holy cow, this is katrina-like. again, loss of life, no s. but property. where did it go? sirchlts this can keep coming up with new iterations. then they go to the theme parks, and they develop a whole new theme market. we spent the first few hours giving them phone lines. and the dmm equipment has been

working fine, everyone is up and running. >> we have the opening out of the way for the end of the metropolitan. the next big deal is who will play at the close. open for the first time in a few days. we're open live on the first trading day of the week after being closed for two days because of hurricane sandy. trading going as planned, though volume is relatively light. we'll cover the markets in the aftermath. first what the markets are doing, the dow roughly the first part of the session in positive territory s&p is down two, the nasdaq is down almost 20. an interesting contrast in tech stocks, in which the head of apple's -- microsoft trading

higher. facebook a rally last week, trading sharply, lower today as the stock's second lockup period expires. facebook employ embrace are also to share their vested shares today making about 234 million shares eligible for sale in the public market. i want to take a look at this live picture from breezy point, queens, one of the sore spots from the entire sandy story. a devastating fire ravaged area after the the mayor sewed the comparisons to world war ii were not necessarily out of the place, as the fire ripped through that area near coney island. gary kaminsky is at a post near where where most of the insurers trade. amount on, a new all-time high? >> viewers;.g8 may be surprised. i'm back here in the garage around the corner.

this is what we call old school. to pit this in perspective, this used tore spear leads.,cff they acquire spear -- it's down to 20, this man versus machine thing, but you needed the 20 guys to open up the insurance stocks, allstate, progressive, chubb, and if you take a look, you can see allstate opened down, then rallied since, but the volumes very, very light, nothing abnormal, so if you look at all of them, most of this em -- not a lot of volume, not a lot of activity, and i will continue to drive on this theme, what i am hearing is people are sitting on their hands and don't expect a lot of movement until early next week. >> we want to bring in jim paulson, chief investment strategist, brian belski, chief strategist with bmo capital

market guys. good to see you guys. jim something wrote how great does that opening bell sound? it was a good thing to have. >> i think so. ty end of the day i think this is more a human tragedy and t-term economic hit, because it wasn't a financial panic which closed the market, which a lot of closures have been panicky. but even though it was closed for four consecutive days, it was opening elsewhere. and every day we had pricing action going on somewhere. futures here, overseas market, that allowed us to keep track of where we were, so i think that took the tension out of the open, but it sure feels good getting back to normal. i think we'll start looking ahead quickly. >> looking ahead in what sense, brian? people have tried to make the

compariso comparisons. it's mixed when you have a natural disaster, you have a big transfer of wealth. >> remember katrina was where the stock market and america were hitting new highs, so that might be a bit misleading, but the bottom line in terms of our work, we think stock prices will be high other. we're not surprised there's low volume today. we had a situation i think with the end of the closing year for many of our mutual fund clients, just needed to close out some positions, but for all intents and purposes, we would agree then on a short-term basis, i think most investors are sitting on their hands and waiting to see what happens. >> yeah, that is one of those binary outcomes are hard to read. are you having clients say call me until next wednesday, until then i have no interest?

-- >> not so much. i really think that we know pretty much there's not going -- one party will not get all three pillars of power here and there's going to be a split -- whoever gets the seat. i think that will ends up meaning it will be a lot like a lot of gridlock. >> i think it's the best outcome. it means the private sector determines more of the outcome than the government does. so i think investors did look more to the economic momentum, whether china is -- which is a very good thing, whether the new approach to europe is working, continues to work. i think those will be more of the focal points than -- the election will come and go. whoever is in the seat, i think it will be dictated more by private market acts than the

government. >> brian, jim mentioned the trajectory of the economy. we'll get a jobs numb on friday. a lot of people will look ahead through it. but your expectations for it, and does it set some kind of tone, if not for the next 30 days, through year end? >> the pace of the job growth has been very low relative to other historical recoveries. jim did a great job building the mosaic, but i think what most investors are missing, carl, if you look at the u.s. as an asociety, and you apply two words -- consistency and stability -- u.s. earnings, u.s. balance sheets, u.s. cash flow among the strongest and most stable in the world. we actually believe the way the u.s. has conducted business the last four or five years in particular is a model and template for the rest of the economies around the world to follow suit. that's why we believe the u.s. is set up to continue to lead equity and asset performance for

the next 3 to 5 years. >> well said. people talk about resolve and pulling together in this time of natural disaster, but you could say things more broadly about what company versus done with their own balance sheets the past few years. good to see both of you. thank you very much. brian sullivan is managing the desk back at hq. >> the scenes you're showing, a lot of dove station, and those people will rebuild, as governor chris christie has said, and they bha be using products from owens corning, masco, lumber liquidators for flooring, all those stocks moving higher. people will rebuild. >> thanks a lot, brian. rick, i'm interested in how this

morning and the opening bowl was read in the midwest where you are. >> lynn, the human tragedy is the issue most discussed in chicago. i think there's a lot of debate to exactly the process of what exchanges should do, how they should remain open, separated electronically, the fragmentation of the equities versus the more consolidated futures these are debates that have been ongoing for the last several days, but the biggest debate is the subway system, transportation, people out of power. we understand. so there's two discussions going on, but really there's a third discussion going on as well. one year ago, the eighth largest u.s. bankruptcy, m.f. i'll tell you what, it's a very surreal day. i will tell you this. it's been a year, but there is nobody that is more unpopular in

the circle of futures trading in chicago than jon corzine, probably more unpopular than bartman, the gentleman that touched that baseball in 2003, that doesn't come around much, hasn't been seen much, refuses interviews. many people down here see a lot of similarities. when you look at all the stories in the day, one word emergeses connectivity. not the type of connectivity we're talking about regarding computers and trading or telephones, but to political forces. obviously an ex-governor, exsenator, the type of cokeivity he had, to his finish efforts, and how he bundled. people in chicago and the futures industry, nationwide that i interact with, every visitor group, it comes up. people's memories are not going to go away.

they really do isolate two issues. the first issue is how our man, mr. terry duffy, said that basically the question of how much corzine knew about the transfers should be investigation, but his investigation was called off, and the fact that that transfer to jpmorgan of that money is just as fresh and raw today as it was a year ago. we haven't ahead the end of this. chicago will keep pushing the envelope to find answers. back to you. >> less popular than bartman. that says a lot. with new york's airport still recovering, how long will it take for the airlines to get back to normal?

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welcome to the world leader in derivatives. welcome to superderivatives. carl, you'll notice the airline industry has been grounded for several days. so far 90,500 flights have been cancel. new york laguardia still remains closed. david cush is the ceo and president of virgin. good morning. >> good morning. >> how much of your business is on the east coast? >> the east coast represents about 40% of our business. we are a long haul carrier, but we have substantial operations in washington, boston, new york,

and a smaller one in philadelphia also. >> so explain what you ended up doing managing the business going into sand? >> i think the most important thing as far as how smooth this will be coming up is how you wound down your operations. we canceled early, made sure we got or crews and aircraft in the right positions, where the firing pistol was fired, we were ready. and we are ready and i think the rest of the industry will be also. >> are you disappointed that the airports haven't opened more rapidly? >> no, we think they have done a great job. you have to go in, inspect the airfield, make sure the infrastructure is working, even things like the electricity supply, the fuel supply, making sure fuel hasn't been contaminated. they've done a greet job. they've been holding conference calls several times a day.

>> so what are youbxa doing now? what's your strategy over the next few days? >> the key thing is we have our airport in the air. we have aircraft on the way to jfk right now. i would think we will be fully up to speed by tomorrow with our full schedule. >> wow, that seems quite rapid, perhaps more rapid than i get the impression other airlines will be up to speed. >> they have a tougher task. they have hundreds of flights, they have to rebalance cries and aircraft, makes sure scheduled maintenance has been done. so they have a tremendous logistical that ugh's a smaller carrier point to point we don't have. in the meantime, we've seen a sharp drop in the price of oil clearly we're lower than that. prurmably that's transform tiff

for you guys. >> well, certainly it is for the entire interesting. if you look at energy prices, it's 30% to 35%, and when you see a 10% to 15% move down, that goes directly to the bottom line. we're hoping we see more of that. still aiming for an ipo in a year? 18 months? >> yeah, i think a lot of it depends on the economy, you know, which has some uncertainty right now with energy prices, but we're quite optimistic about the energy strength. i think the fundamentals are as good as they have ever been and we're optimistic about the future. >> david, thank you very much for sparing the time. >> thanks, simon. be well. meantime, a large section of newark had its power restored last night. mayor cory booker has spent much of the last few days driving around respect reporting to

emergency crews and communicating via twitter. mr. mayor, great to talk with you. thank you for taking time. >> my pleasure, and i appreciate the attention you're giving to the crisis. the media really helps. >> so much of the pictures today are looking at tom's river or breezy point or hoboken, but specifically in newark, what is the situation? >> well, first of all we're seeing devastation around the state. i just want to express or concern, our compassion and our prayers for those who are struggling in many ways in the most unimaginable effects of the storm. in newark we still have massive power outages all around our city, and people are still struggling. people with medical devices, people that need to refrigerate medicines, seniors in high rises, these all can amount to crises, and we're being very attentive to those concerns and trying to get the power

restored. in addition to that we're seeing problems with co2 alarms, people succumbing to fumes, as things kick back in, and we need people checking that you are meters, pilot lights and the things we're starting to see some crises with. our fire department has been working overtime with many smaum fires started by electrical devices, especially in cars. they get retriggered and then cause fires. so there's still open hards in the streets, hazards like i've described, that demand attention. we're looking at basically the power outage from hurricanes, and i know it's still early, and no one wants to shoot arrows yet. isn't it appropriate to ask whether these utilities whether it's in new jersey, long island or new york, we know they tried, but isn't it possible they did

not try hard enough, that their prep was hard enough? >> well, i'm not in a position at all to comment on that. i have little knowledge. we haven't done a post mortem. what i can say is in response to the outages, we have seen a level of investment by personnel that i have not seen at all in my tenure as mayor. they have moved assets around the country into the city of newark. their people have been xwreded with my people. we're work the in coordination in a remarkable way. we're sees restorations their beating estimates and making a lot of residents breathe a sigh of relief. we're still in a time of crisis and emergency response. in that lens and window, i can do nothing but express my appreciation. >> given in that tony, mr. mayor, are you beginning to ask longer-term questions about how

you manage to get a home insured if you happen to live along the new jersey coastline? what needs to happen longer term with places like long beach island? we're beginning to ask some real tough questions. >> i just came from our command meeting, and we're taking a lot of notes. there's a lot to work through in the post mortem of all of this, because you said it in the earlier comment. the reality is, you know, i've seen every crisis make is better, make us stronger, make us ask the right request els. and this one we have a lot to learn from and very important questions we need to ask as a state, as a city, as a community. that's what we are. we are americans. we actually do learn from our past. we actually do apply our knowledge our wisdom and grit for making things better. i believe we'll come out of this crisis. we've lost seven people in the

state already. it's difficult. but i believe we'll come out stronger and more ready, prepared. you're probably tired of$gq having to respond to governor christie's comments, but when he says he doesn't give a damn about election day, what is he trying to say? >> the governor is pretty plainspoken. i never need to read his mind. he shoots from the hip. right now i note the spirit of the governor. we are dealing with life-threatening situations all around the state. i have people with urge sis just getting food right now, getting medicines, so the patience with thinking about next tuesday is thin. we're focused on the now, on the immediate, on serving people in crisis. i understand where his spirit is, and the other thing people need to know, we are resilient people in america and certainlyp resilient here in in this in this. so i'm confident that after two,

three more days as the crisis begins to abate, we will find a way -- or make a way to ensure that democracy continues in this region. but right now every body -- we need every body to be focused on the life-threatening crises. and in the foxhole when you're fighting, you don't stop to ask if your fellow surge is a republican or democrat, you don't ask how they pray to their god. you join hands, pick up your shovel and ax, whatever is necessary, and get the job done. >> mr. mayor, thank you very much. >> thank you. >> all the best. after the break, we'll head to the floor and talk about traders about how things are going on. we are back after a short break. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up.

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joe greggo of meridian and gary kaminsky joins us. >> it seems like we lost a bit of luster. it seemed like people wanted to -- on the buyback will all drive the market, and perhaps at month's end people will be doing rebalancing trades along the way. unfortunately we're losing a little speed. i think people realize the volume is not real out there, so they're trying to be more reactive than proactive. >> you mentioned home depot, lowe's, ibm, if you take home depot and ibm out of the dow, it may be mislead, the the dow may be down like 45 points. so when you're looking at the s&p versus the dow, there is that distortion with the two stocks, you mentioned. >> i think so. for the most part, specifically with the dow, but for the most part, the kind of flow we're seeing is rebalancing the trades

at month's end, which requires them basically to take whatever the market gives them today. until we go ahead closer to the end of the day. you have people trying to play the market, go long some stock and then shell it out every 10, 15, 20 cents. >> will you less busy than what you expected. >> that's a good question. less busy in terms of the number of phone calls, more busy in terms of volume. you know, giving us the ability to do what we do best. >> joe, thanks. >> nice update. when we come back, we'll check on commodities, tech and bonds after the short break. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model.

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i think what's interesting is we got what everybody wanted. it's great that some people overall are -- when i call around, a lot of guys -- a lot of phones still not working. my ferret quote of the day.

-- no power in new york city, my beach house is under water. i'm trading from a hot spot from a mcdonald's in -- so he's trying to get some trading done. >> as far as the post mortem. i asked niederauer hi's already thinking about what he and the industry might have done differently. >> we should have decided as an industry sooner on sunday what we were doing on monday. i think that's the mistake. as for the stock partnership, what's going on a bit of the

usual suspects, the great winner would likely be roofing repairs. owens-corning is the big gorilla in this space, but beacon roofing, a very small company, we're talking about millions of potential homes, so there's the winners, they started moving last week of course floors is another one. now they see this was not a phony storm. as for the insurance industry, the loss is still make somewhat within the parameters of not being a major, major loss. some of the smaller companies out here like tower unice eduni get hit eight more.

thole trade progressive, there are some thoughts that these companies will come out soon, and have to reg up the environment and say what they think the losses will be, so maybe some more activity associated with volume at this time. >> all right. >> i think we'll find out in the next day or so. >> meanwhile, nasdaq trading there. seema has the details. >> good morning. we are lower by about 16 points on the nasdaq, apple being the key loser, the stock on track to post the largest metropolitanly

percentage drop dinse 2008,hhj i'm told that he sees it back within the -- 230 million shares of facebook were unlocked. seagate, manufacturer of the hard disk drives, its earnings and outlook missed street estimates. lastly, a quick look at biotech, as it's vastly underperforming, you do tend to see weakness in this space when there is a fair amount of fear or any type of uncertainly. carl, back to you. >> seema, thanks so much. a check on energy as well. bertha coop is live at the nymex. >> hi, carl. they did trade until contingency conditions they're. volumes were almost up to normal, 85% when it came to

crude and gasoline futures, and we have strong volume as people are looking to close out their books toward the end of the month. we're seeing some outsize moves. we do have a couple factors, gasoline supplies in the northeast were already tight coming into the storm, and we've had some disruption for the refiners. phillips 66 on the earnings call this morning says it does have power back to the massive refinery. the bayway refinery. it will determine when they come back up with that. they call that the gasoline machine. we do have futures expiring. some are saying they have to buy of the contracts at the end of the month rather than take delivery, so we are seeing more in the november contracts than in the december contracts, which starts tomorrow. all right. looking forward to that data. thanks a lot, bertha. let's go to chalk and check in with rick santelli once

again. >> hi, carl. if you look at a 24-hour chart, can you see that once the cash market and everything started to come back online, a basis point lower than the 171 settlement of a few days ago, and if you open up the chart to september, you can see we're hovering at a three-week lowee. more importantly let's look at other markets. if you take that chart back to the beginning of september, you can clearly see we're close to a two-month low in the s&p, and trader are starting to connect the dots. whether it was the back to back under 50 numbers, the spongyness of equities, less than a week ago from a selections, interest rates coming off the top of the range and the absolute more i bund com atoes trade, even though at the top of the range, it's been sideways pretty much.

all of this according to trade irs will continue to give us more of what we've had. a bit of uncertainty, maybe some number better than others, but all in all, the treasury market is continually telling us there's a spongyness that doesn't seem to be priced out fixed income market. back to you. >> thank a lot, rick. see you in a few minutes. in the aftermath of sandy, everyone trying to get a game plan together. they're looking at lumber. >> rick, a great trade other tim basher had typed to me earlier, it you looking it chart, we're back to what they call the draggy elbdrag y drawingi el draghi elbow. you have to remember the importance of apple. since that is -- since it was pointed out that they got full

in that position, so you probably get a number of people with a 13% position, i wouldn't be surprised if they're dumping some of those shares. lumber is up, not a surprise there. that's where a lot of hedge funds are trying to play. personally i've been through a lot of things, i need to point out what we have in long island where i am, is a disaster of it is a disaster, it's almost impossible to put into words. but if you're an investor, you have to focus on things, so everybody is focussed on home, depot, lowe's, in terms of the home depot versus lowe ease, because people always like to play that game. i always think about the dividends. half the return ofck market, if you look at a screen of the companies with the longest history of different payment growth, courtesy of morgan stanley, coincidentally lowe's is number two, long term

with a 15-year dividend growth. the dividend yield right now about 2%, so it is important to remember home depot doesn't screen anywhere near that if you're thinking about this longer term. lowe's on this list here, the second longest-term grut of that different show you a day off. shareholder focus allocating the capital the right way. >> that's crazy. >> this morning the important thing was to go long is a little late, that the winners of that game are the ones who gault on friday. is it too late or not? >> all morning, you grout the sense that whatever you saw at the opening was a distorted open. i really don't think price discovery in terms of what you're seeing, whether it's home depot or lowe's, you see the board up there, just to put people in perspective, we are not getting the type of data feeds here on the floor that we normally get, as everybody here is somewhat frozen. >> it's weird to look up at some

of these boards and seeing nothing. >> yes. yes. >> though the feeds continue in different channels. >> exactly. >> you got it. >> when we come back, how fedex says the storm has affected their operations. what a job that must be today. we have a live update after the break.

welcome back. coming up on today's "halftime report," we're looking at what the market is doing on the first day of trading following the superstorm. apple on track for it is worst monthly drop since 2008 as the market gets the first opportunity to trade the management shake-up. and filling up at the pump, different around sandy's hardest-hit areas. we're looking at the energy trade as the east coast refineries getting up and running. we'll see you in about 15 minutes or so. >> thank you, scott. governor christie is postponing halloween because of the hurricane sandy. he has put off celebrations under monday, november 5th because of unsafe conditions due to the storm. you've got to feel for all the kids in jersey. gary, a lot of people going through hardship. >> the children out by where i am, halloween is the last thing on their mind. getting electricity would be the

best trite. >> and that's for homes that -- important to note. the first flight into the newark liberty airport was a fedex plane, landed at 7:12 a.m. fedex is expecting to resume flights today. paul tronsore leads the control center, is in memphis this morning. thank you for taking some time. good to talk with you. >> glad to be here, carl. >> so obviously with airlines, it's about what's in position, what's out of position. you have this one plane back into newark. how much is still to be done on the fedex front? >> a lot of work to be done. the first airplane this morning in newark was a fedex airplane. we put in three more right after that. we put four into kennedy. we're rapidly starting our air network and expect near-full air operations today, carl. >> i think we're waiting on justification -- i'm south korea, laguardia seems to be the real mistily, i'm not sure how

much you fly into there, probably not much, but can you kavgtize the logjam. >> laguardia, fedex does not operate into la gaurda. we are not hurt by that. we are in newark and justification and the surrounding airports, so there is some backlog in the system. it is all moving toward newark and jfk today. i can tell you our u.s. ops, nearly 15,000 people and nearly 7,000 vehicles are out delivering to the areas we can. so we are restarting very rapidly today. >> a lot of people in the retail industry trying to gauge the folk. one analyst has pointed out the timing here with sandy is not as critical as it was with irene. we know your but just day is coming up early to mid-december. how much -- how would you characterize the impact of sandy because of the timing of the storm?

>> well, so let's talk about planning for sandy, really, carl. we've been watching this for well over a week. we made sure all our equipment and people were safe in advance of that. so we have protected the large majority of our assets there. and really what we are focused on is getting back to normalcy. one of the sure signs of normalcy is that fedex ground freight or fedex express truck driver down the street deliver packaging. we're excited to be delivering and picking up boxes. >> what happened to the people who paid for delivery on monday that never got there. do they get a free delivery? >> that's a great question. in times like this, we enact the act of god clause, and we do not -- we suspend our money-back guarantee during times like this. our focus is getting back to as quickly as possible restoring that guarantee for all our

customers around the world. longer term, paul, i know your staff includes a teams of meteorologists. we've been asking other companies whether they are beginning to modding an increase, an acceleration of storms like this. do you think that's a reasonable suggestion? >> well, sure. sure. so, you know, we've seen the same studies that are out there relative that increase storm activity. the beauty of the operation here at fedex is this idea that we have a staff meteorologist that can foresee this for us and we're able to plan well in advance like we did with this storm while this perceived increase is p'4yzimpactful. we do have planning in place and can react well. >>x6 we'll see if you have to react to it more on which than not in the future years. thanks so much. >> thank you, carl.

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names like sovereign self-storage and cube smart, because as people have to move their belongings from damaged homes, they're going to store them for a couple months, so you may see an up tick in revenue this year, early on into next year as simply people need a place to put stuff before they can rebuilt, as we all begin to rebui rebuild. when we come back, what effects did the storms have on local businesses especially local banks. ♪

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hurricane seen shuttered banks, both big and small as it barreled toward the east coast. in the past was sun national, xh after closing all its branchs the past two days, starting to reopen. tom geisel is joining us. >> sure, good afternoon, carl. >> walk me through where you are right not in the narrative of getting back to performance. >> well, first and foremost we

have over 700 xloisees in the state of new jersey. thankfully all of them and their families are safe. now that that's behind us, we can focus on getting back to branch operations. we were very force nat we did not lose connectivity from an internet perspective during this whole storm situation, so our customers were still able to transact online. we've got able to gain access to all but four of them, and those four are in atlantic county. all but 20 of our locations roekz are up and running. we're just waiting for electricity for those 20. >> as we look at the pictures from the new jersey coastline, even lower manhattan, i can't decide what's more difficult at this point, moving staff around or moving cash around? >> it isfhls very difficult.

the good news is most banks have cash within their safe. they can move that into the atms. they usually keep a significant supply on hand to replenish the atms. so we've been in pretty good shape there, but i think that's a very important thing, to make sure your atms have cash in them. that's one of the biggest focuses and priorities for all banks right now. >> finally, i assume this week is going to be full of waivers of various fees, am i correct? >> there's no doubt about that. we will work with our customers certainly to get them through this difficult period of time. no doubt. >> tom, our thoughts are with you trying to get everything back on line. >> thank you. we appreciate it. gas prices meantime jumping, and the lines to fill up your tank, my gosh. brian, some people saying it reminds them of the '70s.

>> reporter: it is unplefbl. we have a poe stenchal problem here on long island. a hue portion either have no polyer or are out of gas. we have two gas stations next to each other. and they have no idea if and when they're getting new shipments. the one across the street expect to be out of gas within the day. the shell station says they have no idea when they'll be out, because they're three times as busier. new signs of gouging, prices there moving at all? >> reporter: great question. i asked bill, who is the manager, he just simply said, no, we do not do that. we'll check on the other place as well. >> interesting stuff. brian has had a busy few days, longing for us long term in montauk during the storm, and the story does continue today here and there, as the stock ma